Congo - Governance and Economic Diversification Support Programme (PAGDE) - Phase I

The Governance and Economic Diversification Support Programme (PAGDE) is a project that will support Congo's efforts to stabilise the macro-economic and budget framework with a view to building its resilience to shocks and diversifying the economy in preparation for the post-oil era. Hence, it will support the Government in laying the foundation for inclusive and sustainable growth, while limiting any negative impact on climate. Accordingly, it intends to support measures that help to improve governance and efficiency in the management of public resources, create enabling conditions for the development of private investment, and support the "sustainable" exploitation of natural resources (gas and forestry sectors) such that they become a vector for inclusive growth and the development of productive sectors. PAGDE has two (2) components: (i) Improving economic and budgetary governance; and (ii) Economic diversification and “sustainable” valuation of natural resources (gas, forests, etc.). The Programme will focus on establishing an economic and regulatory framework conducive to private investment by: (i) stabilizing the macroeconomic framework; (ii) maintaining fiscal sustainability; and (iii) enhancing governance and reinforcing anti-corruption measures. The programme will also support economic diversification and efforts towards combating climate change by: (i) developing the forestry sector; (ii) establishing a regulatory framework for the gas sector; and (iii) reforming the energy sector. The project contributes to climate finance, with 39 million USD of the total approved amount dedicated to adaptation.